The EUR/USD has remained below the 1.1340 level on Friday. Previously, the rate had retreated down to the 1.1300 level during Thursday's trading, where it found support for a surge.
In general, the rate is expected to resume its attempt to reach the technical resistance levels at 1.1350.
The European Single Currency appreciated against the US Dollar, following the US CPI and Core CPI release on Tuesday at 12:30 GMT. The EUR/USD exchange currency rate gained 13 pips or 0.12% during a minute, right after the release. The European Single Currency kept going upwards after the data release to continue trading at the 1.1275 area against the US Dollar.
The Bureau of Labor Statistics released US CPI data that came out in line with expectations of 0.2%. Note, that the US Core CPI was released at the same time with the US CPI.
According to analysts at TD Securities: "Price pressures will benefit higher food and gasoline prices and another solid 0.2% increase in core CPI, leaving the latter unchanged at 2.2% y/y. There is a risk for a slight deceleration in the shelter, but we expect strength elsewhere, including tariff-related categories, medical care and airfares."
No more data releases this week
The week's important macroeconomic data releases have ended. Join on Monday to the Economic Calendar analysis stream on the Dukascopy Analytics YouTube channel to watch what is next.In the meantime, take into account that the Brexit turmoil is still occurring in the British Parliament. That event has taken up most attention of all Forex fundamental traders.
EUR/USD hourly chart's review
During Thursday's trading session, the European Single Currency was supported by the 55-hour simple moving average to keep trading inside the trend line at 1.1300. On Friday morning, the rate was located at the 1.1320 mark.In regards to the near-term future, most likely, the currency exchange rate will trade sideways to end the trading session at the 1.1340 level.
Moreover, it is possible that the rate could bounce off the bottom boundary of the trend line at the 1.1320 mark to surge towards the weekly R1 at 1.1354.
Hourly Chart
On the daily chart the rate is trading in a long term descending channel pattern.
Recently the currency exchange rate bounced off the pattern's lower trend line and gained enough strength to surge through the pivot points at 1.1240 and 1.1265.
Due to that reason on the daily chart the EUR/USD has no resistance as high as the 1.1354 level.
Daily chart
The total open position volume on the Swiss Foreign Exchange remains mostly short. Since the middle of Thursday's trading session the sentiment was 72% short.
In addition, trader set up pending orders in the 100-pip range were also short. Namely, 61% of pending orders were set to sell.
In general, a majority of traders are either already short on EUR/USD or have set up pending sell orders that would open short positions as a decline begins.